THE M3: AERL & GALAXY COMMENTS

The Macau Metro Monitor, October 18, 2011

MACAU CASINO JUNKETS THRIVE DESPITE CHINA CREDIT SQUEEZE Reuters

Kenny Leong, CEO of AERL, dismissed concerns of Chinese entrepreneurs going into hiding to avoid repaying loans.  Leong said large junkets mainly dealt with super-rich clients with sound creditworthiness.  "Right now big firms do not have such problems. This may be related to the smaller operations," Leong said, adding that smaller junkets were affected because of their more informal funding channels and less rigorous checks on customers.  Leong remarked that AERL extended HK $5BN in credit to VIPs in the first five days of October alone.  "People are saying Macau suffers from trouble in China, this is not the case," he said.

Meanwhile, Galaxy's CFO Robert Drake said, "This year's Golden Week has again proven to be a huge boost to business. The growth of revenue in Macau -- both VIP and mass market -- has been strong and we have seen no signs of any recent slowdown."